Answer to Question #320610 in Mechanical Engineering for Jhonny

Question

3.) For some interest rate “i” and some number of interest periods “n” the uniform series capital

recovery factor is 0.3091 and the sinking fund factor is 0.1941.

1. Compute the interest rate.

2. If the interest rate i = 12% compounded annually, compute the capital recovery factor

for a period n = 5 years.

3. If the rate of interest i = 16% compounded quarterly what would be the sinking fund

factor for a period of 6 years.

Ans. 1. 11.5% 2. 0.27741 3. 0.02559

Answer 1

Answer is given below